Batting for power generators, former energy minister Suresh Prabhu on Thursday said it is the sacrosanct duty of discoms to clear dues owed to gencos and the state governments should ensure the same.
Currently, distribution companies (discoms) owe over Rs 92,000 crore to the power generators, largely in the private sector, which is severely impacting the power industry.
“Till 2000 when power was largely controlled by the public sector, things were different. However, over the period we witnessed large investments from the private sector.
“If these power producers don”t get the returns on their investments, they will not produce power. We cannot let the power industry as well as the generators go bankrupt,” Prabhu, who is India”s G20 and G7 sherpa, said during an online seminar organised by the Council on Energy, Environment and Water (CEEW).
He said government-owned gencos can continue generating power as they are backed by the Central and state governments, but same is not the case with private players.